REGULATIONS ON CRYPTOCURRENCY

It can be challenging to keep up with laws in many international jurisdictions as the crypto environment is constantly changing. As the use of cryptocurrencies grows, so do the restrictions that have been put in place to control them globally. In contrast, the Commodity Futures Trading Commission (CFTC) has taken a more lenient "do no harm" stance, designating bitcoin as a commodity and allowing public trading of bitcoin futures. Arguing that cryptocurrency tokens are "another value that replaces cash," the Financial Crimes Enforcement Network (FinCEN), which does not consider cryptocurrencies legal tender, considers cryptocurrency exchanges to be money transmitters.

The US is making progress in creating federal cryptocurrency law, despite the fact that it is challenging to establish a uniform legal approach at the state level.). In effect, this means that companies that offer bitcoin exchange services must register with FinCEN, implement an AML/CFT program, maintain the necessary records, and report to the appropriate authorities. Cryptocurrency exchanges are permitted in the US and governed by the Bank Secrecy Act (BSA) It applies all the same laws, including those listed in the Bank Secrecy Act, which has its own version of the Travel Rule, and places virtual currency exchanges in the same legal category as conventional money transmitters. FINCEN has made it clear that it expects cryptocurrency exchanges to comply with the “Travel Rule” and collect and disclose information about originators and recipients of cryptocurrency transactions in accordance with FATF guidelines announced in June 2019.

In 2021, Congress also debated how to regulate bitcoin service providers after the Biden administration's infrastructure plan included additional regulations. In order to enforce data collection obligations on cryptocurrency exchanges and wallets, FINCEN proposed a new law in December 2020. Cryptocurrency rules are urgently needed to combat local and international crime, according to the US Treasury Department. To promote effective consumer protection and more effective regulatory oversight, the DOJ continues to work with the SEC and CFTC on upcoming cryptocurrency laws. The rule would force wallet owners to provide identification when transferring more than $3,000 in a single transaction and mandate that exchanges file suspicious activity reports (SARs) for transactions over $10,000 by fall 2022. The new regulations classify bitcoin exchanges as brokers and require them to be. comply with necessary AML/CFT reporting and record keeping requirements. A number of proposals from the President's Task Force on Financial Markets called for additional laws.

In India, cryptocurrencies are not recognized as legal tender and the future of exchanges is uncertain while new legislation is considered. In 2018, the Reserve Bank of India (RBI) banned the "handling or settlement of virtual currency" by banks and all other regulated financial organizations. Although there is now uncertainty about the tax treatment of cryptocurrencies in India, Finance Minister Bhagwat Karad said in February 2022 that a 30 percent tax could be levied on bitcoin transactions. Laws governing cryptocurrency exchanges in India are becoming increasingly strict.

Although in its baby steps, crypto in Pakistan is still being regulated as any other e-currency.